PT Medco Energi Internasional (USOTC:PTGIF) has reached an agreement with Eni (BIT:ENI) to acquire a 10% participating interest in four oil and gas blocks in Indonesia’s Kutai Basin, located in East Kalimantan.
The agreement covers the Muara Bakau, Ganal, West Ganal and East Ganal blocks, according to an announcement by the Indonesian energy company on Monday.
The four blocks are operated by Searah, a joint venture between Italian energy company Eni and Malaysia’s Petronas.
The proposed acquisition includes interests in producing assets, development projects and exploration acreage within the Kutai Basin.
Among the assets covered by the agreement is the Geliga gas field, which is estimated to contain approximately 5 trillion cubic feet of natural gas and 300 million barrels of condensate.
The transaction would expand Medco Energi’s participation in oil and gas activities in East Kalimantan through minority interests in the four blocks.
The announcement follows a separate agreement signed in October between Eni and Pertamina Hulu Energi, the upstream subsidiary of Indonesia’s state-owned energy company Pertamina.
Under that agreement, Pertamina Hulu Energi agreed to acquire participating interests in three oil and gas blocks in East Kalimantan.
The financial terms of Medco Energi’s proposed acquisition and an expected completion date were not disclosed in the supplied announcement.